Draft Multi-Year Climate and Energy Fund 2027 published

The cabinet has the draft multi-year program (MYP) 2027 of the Climate and Energy Fund was published. This is the fourth multi-year program of the fund, which focuses on additional measures to achieve the goals of the Climate Act, such as a climate-neutral energy supply by 2050, more renewable energy and a just energy transition.

The fund totals about €35 billion, of which about €21 billion is still available. These funds are intended for additional climate and energy measures, on top of regular budgets.

The draft MYP 2027 proposes to:

• €809 million to be allocated directly to concrete projects
• €5.5 billion to be allocated subject to conditions (e.g. depending on legislation or business cases)
• €1.96 billion to be set aside for 2028
• and €13.5 billion remains freely available, especially for nuclear energy

Distribution over six plots

The program divides funds into six lots, each focused on a specific part of the energy transition:

1. Nuclear Energy: Focused on preparing for new nuclear power plants, including site selection, financing and knowledge building.
2. CO₂-free gas plants: No new funds are allocated in this plot this year; previous reservations continue.
3. Energy infrastructure: Investments in key infrastructure such as hydrogen storage, carbon storage, heat networks, geothermal and grid reinforcement.
4. Early stage scale-up: Support innovative technologies and scale-up, including energy storage and sustainable mobility.
5. Making industry more sustainable & innovation SME: Tailoring agreements with industry and supporting SMEs in making them more sustainable and saving energy.
6. Making the built environment more sustainable: Grants and support for insulation, heat pumps and making homes more sustainable.

Below is a table summarizing planned expenditures by plot:

Energy storage in the draft MYP 2027

Energy storage features in the program in a variety of ways, but the emphasis is on specific technologies and applications.

Electricity Storage

Electricity storage is explicitly named within Plot 4: Early phase scale-up. This involves scaling up innovative forms of (medium-)long-term storage to complement existing battery technologies.

For this measure, €40 million is allocated immediately and €158.4 million is set aside for 2028. The focus is on technologies other than lithium-ion batteries, which are better suited for longer storage periods, thus aligning with the National Energy System Plan.

Heat Storage

Heat storage is not explicitly reflected in the draft 2027 MYP. Although investments are being made in heat networks, specific measures or resources for (seasonal) heat storage are lacking.

Molecule storage (hydrogen)

Hydrogen storage will have a clear place within Plot 3: Energy infrastructure. These include the development of large-scale underground storage, including the HyStock project in Zuidwending, for which up to €287.5 million is available subject to conditions.

In addition, efforts are being made to reduce risks associated with large-scale hydrogen storage. According to the government, sufficient hydrogen storage is essential to better match supply and demand in the energy system.

ESNL response to draft MYP 2027.

The draft MYP 2027 shows that energy storage is becoming an increasingly explicit part of energy policy. This is a positive development.

At the same time, we note that the financial commitment is not yet sufficiently commensurate with the crucial role that storage plays in the energy system, including in solving grid congestion, integrating renewable energy, and ensuring security of supply. Recent geopolitical developments underscore the importance of a robust and flexible energy system. This calls for timely investments in the energy system of the future, in which energy storage plays a key role.

ESNL therefore advocates a more structural and substantial commitment to all forms of energy storage so that the development of these markets does not lag behind growing system needs.